RBI imposed Penalty on AXIS Bank for Unauthorized Operation of Office Accounts

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹29.60 lakh on Axis Bank Limited for violating certain regulatory guidelines. The order was issued on April 29, 2025, and the fine was levied for non-compliance with RBI’s instructions regarding the “Un-authorized Operation of Internal/Office Accounts.” The Reserve Bank of India (RBI) has also recently imposed monetary penalties on four major banks — Bank of Baroda, IDBI Bank, Bank of Maharashtra, and ICICI Bank — for failing to comply with various regulatory guidelines. 

This action follows a detailed inspection of Axis Bank by the RBI under its Statutory Inspection for Supervisory Evaluation (ISE 2024), which assessed the bank’s operations as of March 31, 2024. During this review, RBI identified instances where the bank failed to follow the prescribed norms.

Specifically, the central bank found that Axis Bank had routed unauthorized or unrelated transactions through internal or office accounts, which is a breach of the regulations. Following the inspection, the RBI issued a notice to the bank asking it to explain why a penalty should not be imposed.

After reviewing Axis Bank’s written and verbal responses, the RBI concluded that the violation was substantiated and proceeded with the financial penalty.

It is important to note that this action is related to shortcomings in regulatory compliance and does not question the validity of the bank’s agreements or transactions with its customers. Additionally, the penalty does not prevent the RBI from taking further actions, if necessary, against the bank in the future.